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Arizona Form

2014 Agricultural Pollution Control Equipment Credit

325

If the allowable tax credit exceeds the taxes otherwise due or,

Obtain additional information or assistance by calling one of

if there are no taxes due, the amount of the credit not used to

the numbers listed below:

offset taxes may be carried forward for not more than five

Phoenix

(602) 255-3381

taxable years as a credit against subsequent years' income tax

From area codes 520 and 928, toll-free

(800) 352

- 4090

liabilities.

Obtain tax rulings, tax procedures, tax forms and instructions,

Specific Instructions

and other tax information by accessing the department's

website at

Complete the name and taxpayer identification number

section at the top of the form. Indicate the period covered by

General Instructions

the taxable year. Include the completed form with the tax

return.

Arizona Revised Statutes (A.R.S.) §§ 43-1081.01 and 43-1170.01

provide nonrefundable individual and corporate income tax credits

All returns, statements, and other documents filed with the

for expenses that a taxpayer incurred during the taxable year to

department require a taxpayer identification number (TIN).

purchase agricultural pollution control equipment.

The TIN for a corporation, an exempt organization with

UBTI, an S corporation, or a partnership is the taxpayer's

To Qualify for the Credit:

employer identification number. The TIN for an individual is



The taxpayer must be involved in the commercial

the taxpayer's social security number or an Internal Revenue

production of livestock, livestock products or agricultural,

Service individual taxpayer identification number. Taxpayers

horticultural, viticultural or floricultural crops or

that fail to include their TIN may be subject to a penalty.

products; AND

Part 1 - Schedule of Equipment and Current

The taxpayer must purchase tangible personal property

Taxable Year's Credit Calculation

that is primarily used in the taxpayer’s trade or business

in Arizona to control or prevent pollution.

Lines 1 through 10 -



Property eligible for the tax credit includes only that

Column (a): Enter the date that the property was placed in

portion of the property directly used, constructed, or

service or the date it is expected to be placed in service in

installed in Arizona to prevent, monitor, or reduce air,

Arizona.

water, or land pollution.

Column (b): Enter a brief description of the property used in



Qualifying property includes a portion of a structure,

the taxpayer's business in Arizona to control or prevent

building, installation, excavation, machine, equipment, or

pollution.

device, and any attachment to, or addition to, or

Column (c): Enter the cost of that portion of the property

reconstruction, replacement, or improvement of that property.

directly used to reduce pollution incurred during this taxable

Amounts that qualify for the credit must be includible in the

year.

taxpayer's adjusted basis for the property. The adjusted basis of

If there are more than 10 items of qualifying property,

any property for which the taxpayer has claimed a credit must

complete additional schedules. Include the completed

be reduced by the amount of credit claimed for that property.

schedules with Form 325.

The amount of the credit is equal to 25% of the cost of the

Line 11 -

property. The maximum credit that a taxpayer may claim in a

taxable year is $25,000.

Add lines 1 through 10 in column (c) and enter the total.

The agricultural pollution control equipment credit allowed

Line 12 -

under A.R.S. §§ 43-1081.01 or 43-1170.01 (claimed on

Enter the aggregate column (c) totals from additional

Arizona Form 325) is in lieu of the pollution control credit

schedules.

under A.R.S. §§ 43-1081 or 43-1170 (claimed on Arizona

Form 315) with respect to the same equipment or expense.

Line 13 -

Co-owners of a business, including partners in a partnership

Add lines 11 and 12 and enter the total. This is the total cost

and shareholders of an S corporation, may each claim only

incurred during this taxable year of all items of property for

the pro rata share of the credit allowed based on the

which the taxpayer is claiming the credit.

ownership interest. The total of the credits allowed all such

Line 14 -

owners may not exceed the amount that would have been

Multiply line 13 by 25% (.25) and enter the result.

allowed for a sole owner of the business.

The credit is available to an exempt organization that is

Line 16 -

subject to corporate income tax on unrelated business taxable

Enter the lesser of line 14 or line 15. This is the allowable

income (UBTI). The credit must result from the activities that

credit for the current taxable year.

generate UBTI.

Instructions For Form 325 - Arizona Agricultural Pollution Control Equipment Credit - 2014

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